Wednesday, October 24, 2012

A half dozen or so things wrong with the Wiser Choice land swap, with a boot payment. As the deal was written up when proposed earlier this month.

Monday's Strib report by Paul Levy, "New round of turmoil in Ramsey - The state has been asked to investigate alleged conflicts of interest in the city," focused on the Flaherty rental-by-the-rails dealings, and Councilmember and HRA Commissioner Jeff Wise's effort to secure the best deal he can in relocating his liquor store. Much on Crabgrass has already been written about Flaherty.

Looking in this post only at Wise - Start with the belief that Wise is entitled to as good a deal as he can gain, honestly, and if he does not like offers he can force things to eminent domain litigation to have an impartial judge set the deal.

The problem of appearances of the negotiations aside, start with a single page document, the city supplied synopsis of the deal Wise expects as fair to him, and generous enough that he would not litigate.

Set aside for now the fact that appraisal is a highly inexact and subjective thing and to say, "We got a second appraisal," is little different from saying, "We slaughtered a second chicken, and have two sets of readable entrails." Two Tea cups, two sets of readable Tea leaves.

And set aside the fact that appraisers can be crooked and at least one, Renne, hanged himself in his bedroom closet; in the past, in the course of the ever unwinding Town Center saga.

Put aside the situation where, if it was Landform's Lazan negotiating with Wise, each had an incentive to kite values, where a favorable pricing set to Wise that also included a big land price in Clown Center would mean Jeff's happy and Lazan's commission is maximized. With such incentives for less than fully adversarial arms-length dealings the scenario is wholly suspect. And, since dealings were kept secret (nonpublic, which for me, not a city politician, is "secret") as they unfolded, we have little cause to attribute much merit to the process. But put that aside. Along with the notion that a big pot of money from the county was expected and instead of putting that into concrete and rebar on the Armstrong road work, it was earmared for flowing to Jeff, then back to the HRA's slush account (purportedly now standing at around $300,000), an amount of roughly half a million county provided dollars, shifted into HRA coffers, for HRA - Town Center mischief, or sound fiscal practice, whichever.

Just look at the face of this document (click to enlarge it and read - highlighting added):

Start with $940,000, (building, business and land).

It is most unusual to not break tangible real property out as a separate line item, and then it should be "business impact" and not "business." Nobody was buying Jeff's business. He kept the trade name, the goodwill, and moving across the street was not going to confuse drunks and their ability to find liquor when wanted. Indeed, the use of the acquired premises for anything like the "business" was expressly disavowed, via the restrictive covenant on city use of once acquired real estate.

So "business" is wholly phony, and padding. Now, the value of the thing, besides retained goodwill and name, is inventory. Booze is highly portable potables; witness the Whiskey Rebellion and the ease of Prohibition era bootlegging. Moving a stock of booze across Armstrong would be de minimus in cost.

Next, "trade fixtures."

With the restrictive covenant, booze-shop related true fixtures [affixed to the land becomming part of the real property] would have little value, and would be moved if of much real value to Jeff. Moreover, "trade fixtures" always are regarded as personalty, not realty, and are not treated as a matter of law as if affixed to the land and intended to become a part of the real estate. Putting a "trade fixtures" line item in that thing insults the intelligence of readers.

Last, $90,000 to move a stock of booze across a street? Get real. A cash register or two? Clearly there is kiting going on. Business impact, and actual fair value of the realty, the building and the land, and parking lot improvements, are all that is real in that sheet's numbers.

Next, how is business impact ameliorated? Jeff has a year-and-a-half to move.

So, stripped to its essentials, the present Sunwood work may have lessened drunks willingness to drive around a bit to get their vodka or rye, and some may have found Coborn's shelfs sufficient as needed. But Jeff wanted that work and voted for it after all, it being integral to his plan for a top notch new location in Town Center. So that intermediate cash pinch, he willingly accepted - and voted to advance it.

Down to essentials - existing building and land swapped for improved unbuilt land [call that Sunwood reroute expense an improvement, although it is debatable in a larger sense of the meanings of the word "improvement" but as to the value of the land Wise had earmarked as his desired locale, putting the road past it did boost its value to him, for his purposes, and "improved" his expectations]. Then, he keeps the tradename and all the goodwill, and the inventory; so, he gives land and structure, for land, and his building a structure. And if he does not sign personally to be liable on the building, his corporation could turn around and sell that land to another speculator besides him, and he could consolitate and reinvest. It seems to all have been somewhat loosey-goosey, and you tell me what contract rights and conditions were to be imposed in any final dual closing, on obligations Jeff owed City of Ramsey in how he'd be promising to use the new land. Enforceable city rights, vs. declarations of a possibly later altered intent. I admit not knowing any detail in that direction, and I am unaware whether Jeff and the city have publicly released any such detail.

But, bottom line, the single page deal summary has several infirmities clear within the four corners of the document. Is that stuff worth $1.1 million? Not to me.

If I sat on that amount of wealth, and some beyond it, the nearly last thing I would think to do would be to buy that site - a presently operating liquor store - with a restrictive covenant that it would have to be otherwise used. It's not something I would expect many investors to find attractive as a deal, but this is City of Ramsey negotiating in lieu of exercising eminent domain, and it surely would inspire more faith on my part if there were more of an appearance of arms-length adversarial dealing, which I do not see as sufficiently present if it was a deal cut between Jeff, the city official, and Lazan, ostensibly the city's fiduciary, each with a personal stake on what to each would be the most fiscally rewarding outcome.

Mutual backscratching can happen, not to say it necessarily is a factor here.

However, given all that, it surely is best to postpone deciding on all that stuff until January. That is a small time window compared to the year-and-a-half Wise would have as transition time within his contract. And a review of the comment thread on Levy's article, the thumbs up and thumbs down annotations, suggests that the council sworn in this coming January might include several different faces; and it is a certainty that in January Wise will not be a city official when his desired current package of possible terms and conditions are best revisited. Indeed, there may be higher priorities for initial action in the minds of new council members, early in January. If so, waiting until late January or early February, on the year-and-a-half anticipated cutover time frame, would add little extra burden to Wise.

To me it seems there was undue haste in pushing the Sunwood reroute, and in also pushing the Wise dealings as if high priority, front burner. Surely they were that to Wise, but city officials have to maintain a broader perspective beyond setting a highest priority to accommodating one of their own.

_____________UPDATE____________
Somewhat related, what drove me up the wall with that Reflections in Ramsey author's contentions about "Jeff sold his current position" nonsense; is that things are deliberately misstated by her as if this authoring individual had never negotiated to buy a used car with a trade-in, and had the car lot salesman say, "Well it looks fine to me but I have to check it with the boss." At that point, no trade-in's been done, no new car terms set. It is up to the boss. And in the Wiser Choice case, the boss was the councilmembers exclusive of Wise who recused himself; wearing their HRA hats, and the boss rejected the thing. No acceptance by the boss, no deal, and everybody knows that so that the Reflections lady, she simply wanted to mislead people writing as she did.

No comments:

Are we to see a reenactment swearing contest; what did he know and when did he know it?

click the image to read Politico coverage. Out of the loop, integral part of the loop, what will we learn?

Time for Progress is Upon Us

click the image - view the campaign flyer showing Liebling's issues platform in a nutshellAND: Please view this video about the candidate, via a conversation with the candidate - an issue oriented candidate who readily says where she is, on leadership issues that are real and not targeted to inflame biases and passions above reason and responsibility.

Tweet if you IQ is 90 or lower; 55 being best. YES I'M TALKING TO YOU!

Click the image to see what's behind that AP lead image. An EXCLUSIVE, nobody else to touch it. It was Cambridge Analytica and Conway personal polling that settled on that IQ55 optimum. Don't want too much that way for occupying the Trumperville heart of the city. Dumbing it down from Sean Spicer may be a challenge, however, . . . rest assured.

tt's the din that counts.

click the image watch the video.

Democracy Now! posted to YouTube. If you've not an hour to watch this you are as worthless as al may be, unless he's goaded.

TITANIC hubris. PREMATURE prancing.

End forever the "superdelegate" insult. They have had a big-time learning experience, but have they learned??? So -

If Paul Ryan's agenda sickens you -

Click the image to view the progressive dozen. This link, for issue detail from Sen. Sanders.

Chomsky.

DINO NEWS: Democrats in Name Only; they exist as a problem.

a DINO with an up-top money slot

This link. Al Franken in the linked WashTimes item is quoted:“There are a lot of Minnesotans who are Franken-Trump voters. You have to go and talk to them, and you have to listen. That’s what we need to do. We need to listen.” Al knows the score better. Al knows Sanders-Franken voter numbers dwarf that Trump-Franken segment, as to where Al needs to pay most attention, "to listen."

Al, in no uncertain terms, should be telling Tom Perez and the beltway money-bunnies of a new fresh smell in the air. Recognizing (in kind wording) one DINO foundation-family's drift, now, into irrelevancy is far from admitting what's relevant and moving full speed to the Bernie side of the force.

Dinosaurs, DINO ways and means, must and will be extinct (can you say "Primary Joe Manchin and Clair McCaskill"). As Al in the item says; listen. Hear Bernie sounding like a giant asteroid strike upon a DINO status quo. Indeed, primary the poster DINO-bunny of artful misdirection and status quo actions, Cory Booker. Gain attention from that, successful or not. Ideally, send Cory to work with Eric Cantor on Wall Street, where his heart is.

Selfie from hell.

Whose Party is it; and when was it purchased?

click the image, read it, then read the Variety story (and follow the link in it to the moneybags suck-up letter). Then - Weep for the people. They lack great wealth and cannot buy suck-up politician-attention from those making lifetime earnings selling it.

The best President we never had.

Just an old sweet song.

They had a special election which an egregious person won; but then Tom Price held the seat previously so egregiousness is nothing new in GA CD6.

The most substantial and lasting news from Georgia recently is Gregg Allman's death. It happened without any major fundraising on either side, Gregg or the Reaper; with Gregg finally facing "One Way Out.'

Ossoff LOST in Georgia, despite trainloads of beltway/Hollywood money.

Bernie did not wholly turn his back; but unlike as with Quist, Bernie was not invited, nor a focus. It was the beltway Dems' chance to flex their muscles. Bernie did have a pro-Ossoff message. Tepid? Yes. Comparable to beltway DCCC late money spent in Montana - in limited amounts.

Greg Laden authored an excellent OTTO ENDORSEMENT which he identically cross posted on his Science Blog and at MPP (MPP itself does not endorse but individual contributors are free to post personal endorsements there).

Rob Quist tried. He and his family, gaining pubic attention, have shown well. May they prosper.

Montana seems a good state that voted wrongly. From outside of Montana Quist's virtues include being an artist, rebel, populist progressive, and free spirit. Naming their son Guthrie is fine, and at a guess a sense of western history touched daughter Halliday's naming - the Halliday windmill - but perhaps not and the name is based on a kinship genealogy. Roots in Montana with promise for a nation, money pumped from outside did in the candidacy despite grassroots money to make it a fight. We must fight forward from this battle toward winning an anti-plutocrat modern New Deal war.

Art of the Duel.

Minnesota government sees an intriguing twenty paces then turn and shoot situation, the legislature saying we will defund part of your turf if you don't sign but veto; the governor saying "Watch this" and signing while vetoing; specifically, "You defund part of me, I defund all of you, and, bless you watch the doorknob." Daudt needs to have his chum go to the Lexus and get the handgun. Or, but it is Daudt, the other option is being reasonable = another special session to undo mischief that must have been just fine with the Ranger whose name either has two a's or two k's and it's always uncertain for most people to remember which [him defunded, hunky dory]. If there's the undoing of that which never should have been, call it Art of the Deal. An art absent from most zoos. Stay tuned, other channels with more patience for fools, e.g., left.mn where the pathology of foolishness holds a scientific inquiry degree of charm.

Proven fact, for some legislators who truly believe, diminished responsibility and duty applies because Jesus sings The Weight. (And looks like Levon; vice versa. Load off Abbie. Bravo J. AND - 214,000 views of the YouTube is more than folks living in the district. Big time load shift for tracking chapter/verse as party-leadership dictates.)

Of interest. My favorite Odyssey film is Oh Brother Where Art Thou.

Click image to enlarge and read. Or: Read all about it (with links). Website bio. Bonus link, bonus image below, tune time and please, end up differently.

California's S.B. 562 - With an economy and population equaling Canada's, would doctors rebel?

What the bill's proposed Single Payer reform would do and why it may succeed. Noteworthy fact: There seem to not be droves of doctors leaving Canada. Not planeloads nor trainloads. Discontent seems wholly absent.

Alma mater commencement speaker

Two questions: First what was the speaker fee? (Goldman level, or adjusted?) Second, given how Ms. Clinton reacted to election results the day after, why in the world is she not forming an, "I Won The Popular Vote he Had More Electors So Let's Amend the Constitution Together," PAC instead of "Still Relevant Together"? (Such and amendment would be relevant.)

Slick website. Real slick. GMO progressive, perhaps?

Click the image - view the webpage. Too slick? Consider the highlighted word "Bernie" in the context that:"Many of us," and "Some of the people [...] include" begs a question big time. Not a penny from me, until out of the weeds on useful truth; i.e., disclose "most of us" and "Bosses, with 2016 candidate affiliations, are ..." to get helpfully specific. Would you buy an auto without knowing something of the engine?

Tomorrow Belongs To Me. Perhaps?

Click the image for the complete MPP post. Click here for the Bill Moyers post. Click here to Download the free e-book authored by MN Sen. John Marty. Click here for journal article, "Single-Payer Reform: The Only Way to Fulfill the President's Pledge of More Coverage, Better Benefits, and Lower Costs." Click here for pnhp.org - Physicians for a National Health Program.

Click the image watch, and then agree/disagree, but give it a try.

If one party can be made responsive to the people, its one more than the status quo. Learn or be sidetracked makes sense, but propaganda can be "wrong ox" our established Dem ox does not deserve to be gored. Our ox is the good ox, pulling your pitiful little wagon, really. Yours; trust me. Take the time to ponder.

Take the hour to watch. Is it for you? If the Tea Party insurgency brand is not for you . . .

Click the image for the video. Also, Wikipedia, and follow links as you choose. "Primary" the superdelegates since they decline stepping aside? Perhaps they adapt and join for justice. Do your own websearch, find out more.

Glen Taylor's Strib. Feel good news?

The truth shall set you free? What if the truth is that you are consciously being kept on the razor's edge because there you are better shorn?

Bernie discusses a speech he'd heard. A speech with a pair of potted plants behind the speaker.

Click the image to watch a critique.

Buy This Book. Available NOW from your favorite bookstore or these links:

Cause for skepticism. And worry.

All you need is love?

Imagine: Imagine there's no money ... to hugging on a flag ... ...................................................

dictionary definition -

A long-standing definition. You can tell by how the paper's aged.

PRESCIENCE

CLICK IMAGE - watch, think, learn.

Fool me once . . .

Socialism, suitably defined, is great.

Click the image, see a definition. Agree or not but it's free of fearmongering.

Non-socialists, having a good laugh.

image credit: New York Times "And shortly after the Russians announced their intention to acquire a majority stake in Uranium One, Mr. Clinton received $500,000 for a Moscow speech from a Russian investment bank with links to the Kremlin that was promoting Uranium One stock."

Non-socialists, having a good laugh.

Brothers in spirit. Holding kindred dynastic yearnings, which got trumped. Should we anticipate better times as we await Trump's competence? Don't laugh for too long. The bar is set by precedent.

Bubba and Blankfein do lunch at the Boca Raton Resort And Country Club.

Jill Stein on CSPAN - questions and answers

Cornel West interviewed on Democracy Now! by Amy Goodman. The reasons why West endorses JILL STEIN.

Having been a stong Sanders supporter and having a minority DNC convention platform voice, West now has shifted enthusiastically to Green Party support of Stein. Click the image to watch the video.

Tulsi Gabbard - Veteran of two Iraq tours.

Congresswoman Gabbard expresses rational doubt over not the military she served, but about continuation of the policy of Islamic regime change warfare and the consequences. Click the image, to watch the interview with The Young Turks alternate media outlet.

ALEC and its class war aimed to hamstring local initiative.

Click the image to read the report of coordinated nationwide effort in state legislatures to curb wage and work condition relief by local ordinance. .....................................

Scahill writes.

What Evil Empire, huh? You're delusional.

No, not dressed for roles in a Gilbert and Sullivan operetta.

Actual sartorial decision making by Cambridge Analytica after doing a full micro personality assessment of each. One as if having a Gilbert and Sullivan role, the other as if a mid-level Russian Cold War commissar from midway along the Trans Siberian Railway, but with ambition toward a Kremlin posting. Brecht died before he could write a role for Yeltsin. Nevermind; Bannon Tune Time.

Bipartisanship

... and I agree with my friends. My friends agree with their friends, while the friend of my friend is the enemy of my enemies and their friends, and the friend of an enemy of the friends of my enemy is -- wait, I lost the thread ... Well, okay, how about this one, this Shia walks into a Sunni bar and sez, ...

Wisdom of the ages?

Make CHANGE more than a slogan.

But wait. There's more ...
-- AND -- There is wisdom to candidate-direct contributing, vs. the generic party collected/distributed variety -- with the former you know what you are buying and, by specificity, you can cull out funding any of the dregs --

click image

DENTON COUNTY, TEXAS, ROTARY CLUB -

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Following the link Google gave, there is this follow-up verbiage, to make EU bureaus satisfied, hopefully, and since it's all Google stuff and since I am a person working alone and in obscurity putting stuff online w/o compensation or resources, any/all inquiries, hence, should be directed after suitable user websearch, to Google.

Google provides the blog template used here, and appears to possibly include within it the use of cookies to personalise content and ads, to provide social media features and to analyse site traffic. Google also appears to possibly share information about your use of this site with its social media, advertising and analytics partners. See details - below (following text verbatim from a website linked to by a Google website:

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Back to the blog author's text: Bureaucrats are Crabgrass. So, God bless the EU, Google, and their respective bureaus and lawyers.